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4 Sales KPIs To Track Your Sales Army’s Performance

5 Customer Service KPIs To Track Your Sales Army’s Performance
The only way to know if your sales team is growing is by measuring their performance. Here are 4 sales KPIs to help you track your team’s performance.

How will you know if you are making any progress at work? Of course, by tracking and measuring your work performance. And KPI metrics are the key drivers that will help you analyze your work performance. Whether you are a sales manager, lead, or simply a sales professional – you need to understand which sales KPIs to track and measure. And the emphasis here is not to have as many sales KPIs as possible but to have the right ones. So, which are the right ones?

Let’s cut the chase and get on with the most important KPI metrics that each of your sales team members needs to have and religiously follow. In this post, we’ll be outlining 4 important sales KPIs that the top sales professionals across the globe are following to track and measure their performance so that they can improve their performance at every step of their sales journey.

4 Key sales KPIs to track your sales army’s performance

1. Sales and revenue target hit

What’s the purpose of any company? Yes, it is to meet the purpose – i.e., the very reason why the company was born in the first place. And what next? Of course to make profits!  No matter how customer-driven your company is, a business should earn money for it to thrive and achieve the set purpose in the first place. And the sales department being the revenue machine of the company forms the frontline of all customer communications. Put simply, they are the people who are actually responsible for bringing in money and customers. And that’s why it’s important to have a sales KPI revolving around revenue. A sales target or basically a revenue target is a short-term or a long-term revenue goal or a lead conversion rate your sales team needs to achieve.

For instance – “I want my sales team to hit a revenue target of 10 million this quarter.” Or – “I want my sales army to gain 6 new customers in this quarter.”

However, when it comes to setting sales KPIs, first, it is important you set a realistic sales revenue target. And second, give the team a realistic amount of time to achieve the set revenue or lead generation target. 

But, note – context is extremely critical when it comes to setting the sales target for your team. Mind you, no one likes to feel they are underperforming! And if you push your sales team to hit unrealistic sales targets, it will only lead to burnout and poor performance. Who knows…they may even take the ultimate step of quitting the company.

So, how can you set a realistic sales revenue target? Simple! Use the historical data that is available as a base to set the revenue target for your sales team. 

2. Customer satisfaction score and net promoter score

One of the important KPI metrics to consider is the customer satisfaction score – ‘how satisfied your customers are with your products and services?’ And then next is the net promoter score – ‘Will your customers recommend your product and services to their friends or colleagues?’ You might be thinking what this has to do with your sales team? In fact, it has everything to do with your sales team. 

Like we discussed earlier – your sales team forms the frontline of all customer communications. And the impression they create on the customers determines how the customer satisfaction and net promoter score will look like. This is the reason why customer satisfaction and net promoter score should be a KPI metric for your sales team.

Having said that, it’s important to remember that your sales team is not solely responsible for this metric. Because there are so many other factors that can influence customer satisfaction and experience. For example, one of the reasons for getting the poor customer satisfaction and net promoter score maybe because of the poorly performing business website. Maybe your developers didn’t report the bugs quickly enough or there was something wrong with the marketing campaigns that were launched recently. See…you get the idea!

So, if you get a low score – the key is to understand and analyze all the possible reasons as to what made customers give such a poor score. Dig deeper, till you collect all the possible insights. This will help you prepare your sales team to navigate the situation effectively – mainly to build a counter-strategy to make things right.

3. Total tickets resolved and resolution time

How many support tickets is your sales team handling? And how long do they take to resolve customer issues? What’s your team’s first response time? 

Yes, one of the next key sales KPIs to have in place for your sales team is fixing a certain number of support tickets for them to resolve along with a specified average resolution time. 

That being said, you can’t just take the number of resolved tickets at its face value. It’s important you probe further to understand if the increasing number of tickets has anything to do with getting more service requests because of the problems with your products/services. Or is it because new customers are getting added to your customer database? 

4. Average follow-up/handle time

Responding to your customers quickly is one thing, and resolving your customer service issues in the first follow-up is another thing!

Did you know? The average first response time as per recent research is 12 hours 10 minutes. But what’s funny is, 75% of customers expect a response within 5 minutes. Now, you see why it’s important to set the follow-up/handle time as one of the sales KPIs for your sales team.

And if your company uses chatbots to auto-generate the first response, your focus should turn towards the average follow-up time your sales team is taking to resolve the issue. In other words, consider how quickly your sales team is able to solve your customers’ problems without them having to follow up on the same issue again and again.

What’s one of the main reasons behind customer frustration? It’s not getting the timely support or response they need! And that’s why measuring first contact resolution – i.e., if your sales team was able to resolve an issue in a single chat session, phone call, or email response, is a good indicator of how your sales team is performing.

Wrapping up

Knowledge becomes power only when you start applying it in your life – that’s when you will start seeing results. And once you know which sales KPIs to consider for your sales team – measuring, tracking, and analyzing your sales team’s performance will be a piece of cake!

Having said that, sales KPIs are never a one-size-fits-all solution. And that’s why it’s important to alter the sales KPIs so that they best align with the different sales roles and most importantly – your industry. Also, to help you track and measure your sales team’s performance, there are a number of sales analytics and tools available in that market that you can use. Hope the above-mentioned sales KPIs will be of some help to you while setting the KPI metrics for your sales team.

Have any other sales KPIs in mind? Share it with us by dropping a comment.

Also read: 6 Critical Steps You Need To Take to Drive Business Agility

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Priyanka Prashob

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